PVH Q4 earnings rise, sees positive momentum at Tommy Hilfiger

For its fourth quarter, PVH Corp. reported revenue decrease of 1 percent to 2.5 billion dollars, while revenues increased 2 percent on a constant currency basis) compared to the prior year period, including a 125 million dollars negative impact as a result of 2017 including an additional week. Earnings per share on a GAAP basis was 2.09 dollars for the fourth quarter compared to 1.39 dollars in the prior year period, while earnings per share on a non-GAAP basis was 1.84 dollars for the fourth quarter compared to 1.58 dollars in the prior year period.

Commenting on the results, Emanuel Chirico, Chairman and Chief Executive Officer of PVH, said in a statement: “We are very pleased with our fourth quarter and full year 2018 results, which demonstrated the power of our diversified business model. We are well positioned going into 2019 and beyond as we execute against our strategic priorities and leverage the incredible talent across our organization.”

PVH results across core brand segments

Revenue in the Tommy Hilfiger business, the company said, for the fourth quarter increased 2 percent to 1.2 billion dollars and increased 5 percent on a constant currency basis compared to the prior year period, despite an approximately 60 million dollars negative impact of the 53rd week in 2017. Tommy Hilfiger international revenue increased 3 percent or 7 percent on a constant currency to 721 million dollars, driven by strong performance across all regions and channels. Comparable store sales increased 16 percent. Tommy Hilfiger North America revenue increased 2 percent on current as well as constant currency to 447 million dollars, while comparable store sales increased 5 percent.

Revenue in the Calvin Klein business for the quarter decreased 2 percent to 953 million dollars but was flat on a constant currency basis, including a negative impact of approximately 50 million dollars from the 53rd week in 2017. Calvin Klein international revenue increased 2 percent or 6 percent constant currency to 523 million dollars, while international comparable store sales increased 6 percent. Calvin Klein North America revenue decreased 7 percent on current and constant currency to 430 million dollars, while North America comparable store sales decreased 1 percent.

Revenue in the Heritage Brands business for the quarter decreased 5 percent to 363 million dollars compared to the prior year period, including a negative impact of approximately 15 million dollars from the 53rd week in 2017, while comparable store sales remained flat.

FY19 revenues increase 8 percent at PVH

Revenue for 2018 increased 8 percent on constant and current exchange to 9.7 billion dollars compared to the prior year. The company said, revenue increase was due to a 12 percent or 10 percent increase on a constant currency basis in the Tommy Hilfiger business, while international comparable store sales increased 13 percent and North America comparable store sales increase of 5 percent, an 8 percent or 7 percent increase in the Calvin Klein business compared to the prior year, driven by growth in Europe and Asia, as well as in the North America wholesale business, 5 percent rise in international comparable store sales and 1 percent increase in North America comparable store sales and a 1 percent increase in the Heritage Brands business as well as comparable store sales compared to the prior year.

Earnings per share on a GAAP basis was 9.65 dollars for 2018 compared to 6.84 dollars in the prior year. Earnings per share on a non-GAAP basis were 9.60 dollars compared to 7.94 dollars in the prior year. Earnings per share on both a GAAP and non-GAAP basis for 2018 included a 5 cents positive impact related to foreign currency translation.

PVH reveals expectations for full year 2019

The company currently projects that 2019 earnings per share on a GAAP basis will be in a range of 8.90 dollars to 9 dollars compared to 9.65 dollars in 2018. The company currently projects that earnings per share on a non-GAAP basis will be in a range of 10.30 dollars to 10.40 dollars compared to 9.60 dollars in 2018.

Revenue in 2019 is projected to increase approximately 4 percent or approximately 5 percent on a constant currency basis as compared to 2018. Revenue for the Tommy Hilfiger business is projected to increase approximately 6 percent or approximately 8 percent on a constant currency basis, revenue for the Calvin Klein business is projected to increase approximately 2 percent or approximately 3 percent on a constant currency basis and revenue for the Heritage Brands business is projected to increase approximately 3 percent.

The company currently projects that first quarter 2019 earnings per share on a GAAP basis will be in a range of 25 cents to 30 cents compared to 2.29 dollars in the prior year period and earnings per share on a non-GAAP basis to be in a range of 2.40 dollars to 2.45 dollars compared to 2.36 dollars in the prior year period.

Revenue in the first quarter is projected to increase approximately 2 percent or approximately 6 percent on a constant currency basis compared to the prior year period. Revenue for the Tommy Hilfiger business in the first quarter is projected to increase approximately 4 percent or approximately 10 percent on a constant currency basis, revenue for the Calvin Klein business is projected to increase approximately 1 percent or approximately 5 percent on a constant currency basis and revenue for the Heritage Brands business in the first quarter is projected to increase approximately 1 percent.

Picture:Facebook/Tommy Hilfiger